Top-Down analysis!

Ever heard of it?
Maybe
Is it effective?
Very
Do you know how to use it?
You should!

The top-down analysis is a strategy that most beginner traders still under estimate and I still don't get why.
Here's my reason

Top-Down analysis refers to the method of analysing a chart from the bigger time frame down to the smaller time frame depending on the time frame you choose to trade.

For instance;
a pair is in an uptrend in a weekly chart which also just landed on a strong support zone/trendline after correction which means we're looking for buying opportunities.....

We switch to the daily time frame and bump into a down trend with a double bottom pattern signifying a reversal in prices, this might confirm our long bias but still no entry signal.....

Now we switch to the 4 hour time frame which is my favorite time frame and find price above the 50 period MA with an engulfing candle just sitting on top the MA

Now remember trading is a matter of probability so you wanna be putting the odds in your favor, the above process alone puts you miles ahead of other traders with about 75-80% accuracy, calculate that in money and it's a whole lot of Benjamins .

Now I've seen a lot of mediocre traders who refuse to learn the craft properly define Top-Down analysis with an arrow drawn from the top of a chart to the bottom and call it top-down analysis, you'll do giveaway for the market my friend.

Trading takes more than just knowing how to buy and sell, proper entry and exit is key.
King of Charts!